Jan 19th, 2010

€11m dairy fund must be paid immediately and on a flat-rate per farmer say ICMSA   

The new Chairman of ICMSA's Dairy Committee, Pat McCormack, has called on Minister Smith to recognise the extremely precarious current position of dairy farmers and immediately begin the payment of €11m fund agreed in late 2009. Mr McCormack urged the Minister to "get the money out there as quickly as possible and give the milk suppliers some relief". The Dairy Committee Chairman said that last year was the most difficult one in the recent memory of the dairy sector and the levels of farm and household debt owed by farmers was quite staggering. No-one pretended that the fund could be anything other than the most temporary relief but the money was still welcome and farmers would be grateful for anything at this stage

Mr McCormack confirmed that the ICMSA position was that the fund should be given out on the basis of a flat-rate payment to those farmers who had supplied milk in the current quota year. On that basis, the Dairy Committee Chairman said that the payment should be in the region of €550 - €600 per farmer

"The Teagasc figures given last week confirm the unprecedented levels of debt farmers are now working under. My own feeling, and that of ICMSA, is that Teagasc's dairy policy over the last two years certainly didn't help the situation, but that is a debate for another day. In the circumstances in which we find ourselves now, dairy farmers have many bills outstanding and with the outlook for 2010 milk price uncertain, it is absolutely essential that all sources of cashflow are freed up immediately. We need Minister Smith to swing into action on the so-called 'Hardship Fund' immediately and get those payments out and onto farms where they are so badly needed", said Mr McCormack.

Ends.      19 January 2010

  Pat McCormack, 087-7608958

Chairman, ICMSA Dairy Committee

 Or 

Cathal MacCarthy, 087-6168758 or 061-314677

ICMSA Press Office

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